economics

I know this might be basic.....but I am still not sure about subject of elasticity? How do I know the effect, if no price or quantity demanded is given?

Assuming that the price elasticity of demand for automobiles in the United States is 1.2 and that the income elasticity of demand is 3:

a) What would be the effect of a 5 percent increase in auto prices on the quantity of autos demanded?

b) What would be the effect of a 2 percent increase in income on the quantity of autos demanded?
_________________

  1. 👍
  2. 👎
  3. 👁

Respond to this Question

First Name

Your Response

Similar Questions

  1. Technical writing

    In order to have a complete sentence, you need a ________. Select one: a. subject, verb, and a complete thought b. subject and verb c. subject, verb, and a prepositional phrase d. subject, verb, and a dependent clause

  2. Economics 201

    Determine the price elasticity of demand for a microwave that experienced a 20% drop in price and a 50% increase in weekly demand quantity. I know I have to use the price elasticity of demand formula, but I keep getting the wrong

  3. economics

    Identify three goods each for which your demand is (a) elastic or (b) inelastic. What accounts for the differences in elasticity? Thank you for using the Jiskha Homework Help Forum. Let me help by explaining the difference between

  4. Math

    The demand equation for a product is: q=60/p + ln(65-p^3) A) Determine the point of elasticity of demand when p=4, and classify the demand as elastic, inelastic, or of unit elasticity at this price level. B) If the price is

  1. science material

    Calculate the modulus of elasticity for a composite material consisting of 60 percent by volume of continuous E-glass fiber and 40 percent epoxy resin for the matrix when stressed under isostress conditions. The modulus of

  2. econ 1150

    Using the data under D1 and D2, calculate the cross elasticity of Lorena’s demand for golf at all three prices. (To do this, apply the midpoints approach to the cross elasticity of demand.) Instructions: Round your answer to two

  3. Criminology

    Which of these are tactics that a control theorist might use? (Select all that apply.) increase surveillance of subject to ensure control of their behavior help subject find work or other sources of commitment provide subject with

  4. English 3

    1)Select the abbreviation that tells how the italicized noun clause is used. S-subject, DO-direct object, SC-subject complement, OP-object of preposition A lecture on cleanliness was not what the children wanted to hear. 2)Select

  1. Managerial Economic

    Mr. Smith has the following demand equation for a certain product: Q = 30 - 2P. a. At price of $7, what is point elasticity? b. Between prices of 5$ and 6$, what is the arc elasticity? c. If the market is mark up of 100

  2. Math

    Given the function q=D(x)=k/x^n where k is a positive constant and n is an integer greater than 0. (a) How would you find the elasticity of the demand function (b) Is the value of the elasticity dependent on the price per unit c.)

  3. managerial economics

    4. The equation for a demand curve has been estimated to be Q = 100 – 10P + 0.5Y where Q is quantity, P is price, and Y is income. Assume that P = 7 and Y = 50. a. Interpret the equation. b. What is price elasticity at P = 7 and

  4. Economics

    How is elasticity of supply related to elasticity of demand? Is this correct? I know that the terms supply and demand refer to the behavior of people as they interact with one another in markets. Buyers determine demand and

You can view more similar questions or ask a new question.